29. Reciprocity
(1) Where any country, specified by the Central
Government in this behalf by notification in
the Official Gazette, prevents persons of Indian
domicile from becoming members of any
institution similar to the Institute of Chartered
Accountants of India or from practising the
profession of accountancy or subjects them to
unfair discrimination in that country, no
subject of any such country shall be entitled to
become a member of the Institute or practise
the profession of accountancy in India.
(2) Subject to the provisions of sub-section (1),
the Council may prescribe the conditions, if
any, subject to which foreign qualifications
relating to accountancy shall be recognised for
the purposes of entry in the Register.
1[29A. Power of Central Government to make rules
(1) The Central Government may, by notification,
make rules to carry out the provisions of this
Act.
(2) In particular, and without prejudice to the
generality of the foregoing powers, such rules
may provide for all or any of the following
matters, namely :−
(a) the manner of election2
and
nomination3
in respect of members to
the Council under sub-section (2) of
Section 9;
64
(b) the terms and conditions of service of the
Presiding Officer and Members of the
Tribunal, place of meetings and
allowances to be paid to them under
sub-section (3) of Section 10B4;
(c) the procedure of investigation under
sub-section (4) of Section 215
;
(d) the procedure while considering the
cases by the Disciplinary Committee
under sub-section (2), and the fixation
of allowances of the nominated
members under sub-section (4) of
Section 21B6
;
(e) the allowances and terms and
conditions of service of the Chairperson
and members of the Authority and the
manner of meeting expenditure by the
Council under Section 22C7;
(f) the procedure to be followed by the
Board in its meetings under Section
28C8
; and
(g) the terms and conditions of service of
the Chairperson and members of the
Board under sub-section (1) of Section
28D9
.]
30. Power to make regulations
(1) The Council may, by notification in the
“Gazette of India”, make regulations for the
purpose of carrying out the objects of this Act.
10[……….]
(2) In particular, and without prejudice to the
generality of the foregoing power, such
65
regulations may provide for all or any of the
following matters :−
(a) the standard and conduct of
examinations under this Act;
(b) the qualifications for the entry of the
name of any person in the Register as a
member of the Institute;
(c) the conditions under which any
examination or training may be treated
as equivalent to the examination and
training prescribed for members of the
Institute;
(d) the conditions under which any foreign
qualification may be recognised;
(e) the manner in which and the conditions
subject to which applications for entry in
the Register may be made;
(f) the fees payable for membership of
the Institute and the annual fees
payable by associates and fellows of the
Institute in respect of their certificates;
(g) the manner in which elections to
11[……….] the Regional Councils may be
held;
(h) the particulars to be entered in the
Register;
(i) the functions of Regional Councils;
12[(j) the training of articled and audit
13[assistants], the fixation of limits
within which premia may be charged
66
from articled 14[assistants] and the
cancellation of articles and termination
of audit service for misconduct or for
any other sufficient cause;]
(k) the regulation and maintenance of the
status and standard of professional
qualifications of members of the
Institute;
(l) the carrying out of research in
accountancy;
(m) the maintenance of a library and
publication of books and periodicals on
accountancy;
(n) the management of the property of the
Council and the maintenance and audit
of its accounts;
(o) the summoning and holding of
meetings of the Council, the times and
places of such meetings, the conduct of
business thereat and the number of
members necessary to form a quorum;
(p) the powers, duties and functions of the
President and the Vice-President of the
Council;
(q) the functions of the Standing and other
Committees and the conditions subject
to which such functions shall be
discharged;
(r) the terms of office, and the powers,
duties and functions of the Secretary
and other officers and servants of the
Council; 15[and]
67
16[(s) ……….]
(t) any other matter which is required to
be or may be prescribed under this Act.
(3) All regulations made by the Council under
this Act shall be subject to the condition of
previous publication and to the approval of the
Central Government.
(4) Notwithstanding anything contained in subsections (1) and (2) the Central Government
may frame the first regulations17 for the
purposes mentioned in this Section, and such
regulations shall be deemed to have been
made by the Council, and shall remain in
force from the date of the coming into force of
this Act, until they are amended, altered or
revoked by the Council.
18[30A. Powers of Central Government to direct
regulations to be made or to make or amend
regulations
(1) Where the Central Government considers it
expedient so to do, it may, by order in writing,
direct the Council to make any regulations or
to amend or revoke any regulations already
made within such period as it may specify in
this behalf.
(2) If the Council fails or neglects to comply with
such order within the specified period, the
Central Government may make the
regulations or amend or revoke the
regulations made by the Council, as the case
may be, either in the form specified in the
order or with such modifications thereof as the
Central Government thinks fit.]
68
19[30B. Rules, regulations and notifications to be laid
before Parliament
Every rule and every regulation made and every
notification issued under this Act shall be laid, as soon as
may be after it is made or issued, before each House of
Parliament, while it is in session, for a total period of thirty
days which may be comprised in one session or in two or
more successive sessions, and if, before the expiry of the
session immediately following the session or the
successive sessions aforesaid, both Houses agree in
making any modification in the rule, regulation or
notification, or both Houses agree that the rule, regulation
or notification should not be made or issued, the rule,
regulation or notification, shall thereafter have effect only
in such modified form or be of no effect, as the case may
be; so, however, that any such modification or annulment
shall be without prejudice to the validity of anything
previously done under that rule, regulation or notification.]
20[30C. Power of Central Government to issue
directions
(1) In the event of non-compliance by the Council
of any provisions of this Act, the Central
Government may give to the Council such
general or special directions as it considers
necessary to ensure compliance and the
Council shall, in the discharge of its functions
under this Act, comply with such directions.
(2) If, in the opinion of the Central Government,
the Council has persistently made default in
giving effect to the directions issued under
sub-section (1), it may, after giving an
opportunity of being heard to the Council, by
notification, dissolve the Council, whereafter a
new Council shall be constituted in accordance
with the provisions of this Act with effect from
69
such date as may be decided by the Central
Government:
Provided that the Central Government shall
ensure constitution of a new Council in
accordance with the provisions of this Act
within a period of one year from the date of its
dissolution.
(3) Where the Central Government has issued a
notification under sub-section (2) dissolving
the Council, it shall, pending the constitution of
a new Council in accordance with the
provisions of this Act, nominate any person or
body of persons not exceeding five members
to manage the affairs and discharge all or
any of the functions of the Council under this
Act.
30D. Protection of action taken in good faith
No suit, prosecution or other legal proceeding shall
lie against the Central Government or the Council or the
Authority or the Disciplinary Committee or the Tribunal or
the Board or the Board of Discipline or the Disciplinary
Directorate or any officer of that Government, Council,
Authority, Disciplinary Committee, Tribunal, Board, Board
of Discipline or the Disciplinary Directorate, for anything
which is in good faith done or intended to be done under
this Act or any rule, regulation, notification, direction or
order made thereunder.
30E. Members, etc., to be public servants
The Chairperson, Presiding Officer, members and
other officers and employees of the Authority, Disciplinary
Committee, Tribunal, Board, Board of Discipline or the
Disciplinary Directorate shall be deemed to be public
70
servants within the meaning of Section 21 of the Indian
Penal Code.*
]
21[31. Construction of references
Any reference to a chartered accountant or a
registered accountant or a certified or qualified auditor in
any other law or in any document whatsoever shall be
construed as a reference to a chartered accountant in
practice within the meaning of this Act.]
32. Act not to affect right of accountants to
practise as such in Acceding States
Nothing contained in this Act shall affect the right of
any person who, at the commencement of this Act, is
entitled to engage himself in the practice of accountancy in
any 22[Part B State] under any law in force in that State, to
continue to engage himself in the practice of accountancy
in that State after the commencement of this Act.
33. 23[Repealed]
____________________
1&15 Inserted by the Chartered Accountants (Amendment) Act, 2006
and came into force w.e.f. 8th August, 2006.
2 Rules made by the Central Government, called `The Chartered
Accountants (Election to the Council) Rules, 2006’ have been
published in the Gazette of India, Extraordinary, Part II, Section
3, sub-section (i) dated 5th September, 2006 and have come
into force from that date.
3 Rules made by the Central Government, called `The Chartered
Accountants (Nomination of Members to the Council) Rules,
2006’ have been published in the Gazette of India,
Extraordinary, Part II, Section 3, sub-section (i) dated 19th
August, 2006 and have come into force from that date.
4 Rules made by the Central Government, called `The Chartered
Accountants (Election Tribunal) Rules, 2006’ have been
published in the Gazette of India, Extraordinary, Part II, Section
*
No. 45 of 1860
71
3, sub-section (i) dated 17th November, 2006 and have come
into force from that date.
5&6 Rules made by the Central Government, called `The Chartered
Accountants (Procedure of Investigations of Professional and
Other Misconduct and Conduct of Cases) Rules, 2007’ have been
published in the Gazette of India, Extraordinary, Part II, Section
3, sub-section (i) dated 28th February, 2007 and have come into
force from that date.
7 Rules made by the Central Government, called `The Appellate
Authority (Allowances payable to, and other terms and
conditions of service of Chairperson and members and the
manner of meeting expenditure of the Authority) Rules, 2006’
have been published in the Gazette of India, Extraordinary, Part
II, Section 3, sub-section (i) dated 17th November, 2006 and
have come into force from that date.
8&9 Rules made by the Central Government, called `The Chartered
Accountants (Procedures of Meetings of Quality Review Board,
and Terms and Conditions of Service and allowances of the
Chairperson and members of the Board) Rules, 2006’ have been
published in the Gazette of India, Extraordinary, Part II, Section
3, sub-section (i) dated 5th December, 2006 and have come into
force from that date.
10 The words, “and a copy of such regulations shall be sent to each
member of the Institute” omitted by the Chartered Accountants
(Amendment) Act, 2006 w.e.f. 8th August, 2006.
11 The words, “the Council and” omitted by the Chartered
Accountants (Amendment) Act, 2006 w.e.f. 8th August, 2006.
12 Substituted, for the following, by the Chartered Accountants
(Amendment) Act, 1959 :−
“(j) The training of articled clerks and the fixation of limits within
which premia may be charged from such clerks and the
cancellation of articles for misconduct or for any other sufficient
cause.”
13&14 Substituted, for the word, “clerks” by the Chartered Accountants
(Amendment) Act, 2006 and came into force w.e.f. 8th August,
2006.
16 The following clause omitted by the Chartered Accountants
(Amendment) Act, 2006 w.e.f. 8th August, 2006 :−
“(s) the exercise of disciplinary powers conferred by this Act;
and”
72
17 The Regulations framed by the Central Government by
Notification No. 10-A(6)/49 dated 25th June, 1949 were
published in the Gazette of India of the same date.
18 Inserted by the Chartered Accountants (Amendment) Act, 1959.
19 Substituted, for the following, by the Chartered Accountants
(Amendment) Act, 2006 and came into force w.e.f. 8th August,
2006 :−
“*30B. Laying of regulations
Every regulation made under this Act shall be laid, as soon as
may be after it is made, before each House of Parliament, while
it is in session, for a total period of thirty days which may be
comprised in one session or in two or more successive sessions,
and if, before the expiry of the session immediately following
the session or the successive sessions aforesaid, both Houses
agree in making any modification in the regulation, or both
Houses agree that the regulation should not be made, the
regulation shall thereafter have effect only in such modified
form or be of no effect, as the case may be; so, however, that
any such modification or annulment shall be without prejudice to
the validity of anything previously done under the regulation.”
*Inserted by “The Delegated Legislation Provisions
(Amendment) Act, 1983 (No. 20 of 1983) w.e.f. 30th August,
1983.
20 Inserted by the Chartered Accountants (Amendment) Act, 2006.
Whereas Section 30C came into force w.e.f. 8th August, 2006,
Sections 30D and 30E came into force w.e.f. 17th November,
2006.
21 Substituted, for the following, by the Chartered Accountants
(Amendment) Act, 1959 :−
“31. References to registered accountants, etc. to be
construed as references to chartered accountants
Any reference to a registered accountant or a certified or
qualified auditor in any other law for the time being in force or
in any document whatsoever shall be construed as a reference
to a chartered accountant as defined in this Act.”
22 Substituted, for the words, “Acceding State” by Part B State
(Laws) Act, 1951 (III of 1951) published in Part II Section I of
the Gazette of India Extraordinary dated 23rd February, 1951.
73
23 The following Section 33 was repealed by the Repealing and
Amending Act, 1952 (No. XLVIII of 1952) - Gazette of India
Extraordinary dated 2nd August,1952:
“33. Amendment of Section 144, Indian Companies Act, 1913
In Section 144 of the Indian Companies Act, 1913 (VII of
1913), for sub-sections (1), (2), (2A), and (2B), the following
sub-section shall be substituted, namely :−
“(1) No person shall be appointed to act as an auditor of any
company other than a private company, not being the
subsidiary company of a public company, unless he is a
chartered accountant within the meaning of the Chartered
Accountants Act, 1949:
Provided that a firm whereof all the partners practising in India
are chartered accountants may be appointed by its firm name
to be auditor of a company and may act in its firm name.
A(2) Notwithstanding anything contained in sub-section (1)
but subject to the provisions of rules made under sub-section
(2A), the holder of a certificate granted under a law in force in
the whole or any portion of a Part B State immediately before
the commencement of the Part B States (Laws) Act, 1951
entitling him to act as an auditor of companies in that State or
any portion thereof shall be entitled to be appointed to act as
an auditor of companies registered anywhere in the State.
(2A) The Central Government may, by notification in the
Official Gazette, make rules providing for the grant, renewal,
suspension or cancellation of auditors’ certificates to persons in
Part B States for the purposes of sub-section (2), and
prescribing conditions and restrictions for such grant, renewal,
suspension or cancellation.”
AInserted by Part B States (Laws) Act, 1951 (III of 1951)
Gazette of India Extraordinary dated 23rd February, 1951.